If a firm is about to operate in an environment in which there will be a great deal of variability in the level of revenues, then the firm
A) should structure its cost structure to have high fixed costs and higher total variable costs.
B) should structure its cost structure to have high fixed costs and consequently lower per unit variable costs.
C) should structure its cost structure to have low fixed costs and consequently higher per unit variable costs.
D) None of the above.
Answer: C
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